Wednesday, February 20, 2013


Not surprisingly, we had a much smaller group of folks at last night's Financial Peace University class on insurance.  Our small group was GJS, me and another engaged couple.  Our table leader wasn't even there, but she had a legit excuse ;)  I thoroughly enjoyed our lesson insurance.  Dave went over what to buy, what to avoid and what to modify.
He advocates 7 types of insurance:
1) Term life insurance, 10 times your annual income.
2) Medical insurance, Heath Savings Account (HSA) if you have a choice
3) Auto insurance, with enough liability and collision coverage for a major accident
4) Long term disability insurance, 1/3 of adults in U.S. will be disabled in their working lives
5) Long term care insurance for people over 60 years old
6) Home/Apartment insurance, enough to cover replacement
7) Identity theft insurance, not just credit monitoring

He provided some very convincing numbers to show why whole life and universal life insurance is a bad buy.  In addition, Dave shared some real world experiences of people who could have been ruined in a catastrophe but weren't because they were properly insured.  It was powerful stuff.

Today I've been going through our policies and trying to decipher if we have enough coverage on our cars, our condo and our lives. I'm feeling like we'll definitely buy the insurance policies we are lacking within the next year or as soon as we have a baby.  My work offers a great rate on life insurance but open season isn't until November, so we'll have to be patient.


  1. I've never heard about identity theft insurance. What's that about?

    1. It cleans up the aftermath in case someone compromises your identity. You get a dedicated person to obtain police reports, send letters to companies/credit agencies and do the follow up work involved with the theft. Many credit card companies offer the service.